Mr Johnson Earns $100,000 Per Year

question 192

Multiple Choice

Mr. Johnson earns $100,000 per year. Each year he spends $70,000 and saves $30,000. He pays a 5 percent sales tax on all of his spending. Assuming this is the only tax he pays, his average tax rate out of his income is

• A) 1.5 percent.
• B) 2.5 percent.
• C) 3.5 percent.
• D) 5.0 percent.

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Definitions:

Sense of Touch

The sensory system that allows organisms to perceive pressure, vibration, temperature, pain, and other tactile stimuli.

Occipital Lobes

The region of the cerebral cortex located at the back of the brain, responsible for processing visual information received from the eyes, crucial for visual perception.

Seeing Stars

A visual phenomenon experienced after being hit on the head or standing up too quickly, typically resulting from changes in blood flow to the brain.

Broca's Area

A region in the frontal lobe of the dominant hemisphere of the brain, associated with speech production and language processing.